Much of the debate about development in the past decade pitted proponents of unfettered markets against advocates of developmental states. Yet, in many developing countries what best explains variations in economic performance is not markets or states but rather the character of relations between business and government. The studies in Business and the State in Developing Countries identify a range of close, collaborative relations between bureaucrats and capitalists that enhance elements of economic performance and defy conventional expectations that such relations lead ineluctably to rent-seeking, corruption, and collusion. All based on extensive field research, the essays contrast collaborative and collusive relations in a wide range of developing countries, mostly in Latin America and Asia, and isolate the conditions under which collaboration is most likely to emerge and survive. The contributors highlight the crucial roles played by capable bureaucracies and strong business associations.

Ha-Joon Chang evaluates the role of the state in economics and development. In this collection of essays, he reviews theories and practices of state intervention as they have developed over two centuries of modern capitalism. He develops an institutionalist approach to the role of the state in economic change, and examines the issues involved in particular settings including industrial policy, trade policy, intellectual property rights, regulation, and strategies towards transnational corporations. He mounts a sophisticated theoretical and historical case for the continuing essential and constructive roles which the state can and must play in economic development.

Refer review of this policy book in 'Journal of International Development, vol. 10, 7, 1998. pp.841-855.

An exploration of how states address the often conflicting challenges of development, order, and inclusion.

There is a widespread concern that, in some parts of the world, governments are unable to exercise effective authority. When governments fail, more sinister forces thrive: warlords, arms smugglers, narcotics enterprises, kidnap gangs, terrorist networks, armed militias. Why do governments fail? This book explores an old idea that has returned to prominence: that authority, effectiveness, accountability and responsiveness is closely related to the ways in which governments are financed. It matters that governments tax their citizens rather than live from oil revenues and foreign aid, and it matters how they tax them. Taxation stimulates demands for representation, and an effective revenue authority is the central pillar of state capacity. Using case studies from Africa, Asia, Eastern Europe and Latin America, this book presents and evaluates these arguments, updates theories derived from European history in the light of conditions in contemporary poorer countries, and draws conclusions for policy-makers.

Politics in Developing Countries provides a clear and reader-friendly introduction to the key factors and themes that shape political processes in developing countries. Achieving development outcomes such as reducing poverty and inequality is only possible through efficient governance, well-planned policies and careful allocation of resources, but often politics in developing countries has been identified with mismanagement, corruption, conflict and repression of dissent. This book assesses the politics of developing countries in the period since decolonisation, focusing on the ways in which states have or have not worked to the advancement of their citizens’ interests. Key topics include: Colonialism and its legacy Ethnicity and nation building Governance, corruption and the role of the state Poverty and the political economy of development Aid and outside influence. Drawing on a range of case studies from around the world, Politics in Developing Countries looks at the consistencies and variations between developing countries, examining why some have forestalled political change by liberalising their economies, and others have actively stifled calls for change. Wide-ranging and engagingly written, this introductory textbook is perfect for students of politics and international development, as well as for those with a general interest in the challenges faced by countries in the Global South.

The concept of the developmental state emerged to explain the rapid growth of a number of countries in East Asia in the postwar period. Yet the developmental state literature also offered a theoretical approach to growth that was heterodox with respect to prevailing approaches in both economics and political science. Arguing for the distinctive features of developmental states, its proponents emphasized the role of government intervention and industrial policy as well as the significance of strong states and particular social coalitions. This literature blossomed into a wider approach, firmly planted in a much longer heterodox tradition, that explored comparisons with states that were decidedly not developmentalist, thus contributing to our historical understanding of long-run growth. This Element provides a critical but sympathetic overview of this literature and ends with its revival and a look forward at the possibility for developmentalist approaches, both in the advanced and developing world.